Tag Archives: MORTGAGE COMPANY

06.20.13
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Worst 2-Days Increase in Mortgage Rates in the Last 4 Years

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Mortgage rates are revisiting the past trauma, now matching the scope of the late 2010 sell-off, with the past two days matching the scope of Black Wednesday’s sell-off.  “Selling” in this case, refers to the Mortgage-Backed-Securities (MBS) that most directly affect rates.  As MBS prices fall, rates rise.  The faster this happens, the worse it is for mortgage lenders rate sheets, and despite the month and a half of selling, the past two days have been surprisingly abrupt for lenders.  Rate sheets have taken the most profound hits we’ve seen on back to back days (past examples were more concentrated on one of the two days).  Conventional 30yr Fixed best-execution is quickly up to a staggering 4.375%-4.5%, though we’d note that there’s even more variation between lenders as volatility magnifies the effects of different pricing strategies.  

Today’s economic data had precious little effect on trading levels, adding to the sense that it’s going to take official employment data on July 5th, a change in tone from the Fed, or an unexpected tape-bomb style headline to convince markets that the Fed won’t begin curtailing asset purchases in September.  While that continues to be the case, interest rate movements continue to be a risk.  We’d like to say “we’ve moved high enough, fast enough that we’ll probably be able to dig in and hold some ground here,” but that’s not safe yet.  Market participants themselves, let alone mortgage lenders, are still feeling out the post-Fed-Announcement environment.  There’s no reason rates can’t go even higher just because they’ve moved so high, so fast.

Mortgage Loan Originator Perspectives 

“The recent events leave me speechless. In my 10 years in the industry I have never seen a meltdown this quickly and dramatically. We cannot control the market, but we can control our emotions. Closing within 30 days should be locked up. 30-60 days should consider locking as well. Any technical or fundamental basis for floating has been diminished. Is there a saving grace? Perhaps if we continue to see liquidations in commodities & stocks (domestic & foreign) we may benefit from a quick trade, but again, the table has been st for higher rates. Soup, salad, & appetizers are served, main course on it’s way….question is how is your digestive system?” 

“Our jumbos didn’t rise as quickly since the agency MBS selloff yesterday, so there have been some locking opportunities for loans above $417,000, but loans up to $417,000 are up definitively.” 

Today’s Best-Execution ZFG Mortgage Rates

  • 30YR FIXED – 4.0%
  • FHA/VA – 3.75% 
  • 15 YEAR FIXED –  3.25%
  • 5 YEAR ARMS –  2.25-3.25% depending on the lender

Ongoing Lock/Float Considerations

  • After rising consistently from all-time lows in September and October 2012, rates challenged the long term trend higher, but failed to sustain a breakout
  • Uncertainty over the Fed’s bond-buying plans is causing immense volatility in rates markets and generally leading rates quickly higher 
  • Fears about the Fed’s bond-buying intentions were proven well-founded on May 22nd when rates rose to 1yr highs after the Fed indicated their intention to taper bond buying programs sooner vs later
  • The June 19th FOMC Statement and Press Conference confirmed the suspicions.  Although tapering wasn’t announced, the Fed made no move to counter the notion that they will decrease bond buying soon if the economic trajectory continues
  • (As always, please keep in mind that our Best-Execution rate always pertains to a completely ideal scenario.  There are many reasons a quoted rate may differ from our average rates, and in those cases, assuming you’re following along on a day to day basis, simply use the Best-Ex levels we quote as a baseline to track potential movement in your quoted rate).

We Offer A Free Pre-Approval & Consultation!

Call:1-877-205-7266 or http://www.zfgmortgage.com

Click Here To Go Directly To Our Secure Online Application

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05.14.13
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Why you’re probably not getting the best mortgage rate quote?

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A home loan is basically a product and like all products, its sales pitches can be exaggerated. The end result is that you end up with a loan that may not suit your needs at all. When shopping around for the best mortgage rate that is most suitable for you, one needs to be highly discerning with exactly what is being offered.

Short-Term Adjustable Rate

Many consumers make the common mistake of choosing a one-year adjustable rate mortgage due to the deceptively low rate being advertised. Deceptive, because, in the very next year, the rate shoots up.

It is most important that you keep in mind that it is not in the best interests of lenders to offer you a loan with the lowest possible interest rate. Typically they would prefer you to opt for the highest rate you could possibly afford. Doing so will ensure that in addition to their regular commission, mostly one percent of the loan amount, an overage of an extra one or two percent is earned for selling you a loan priced higher than the most favorable deal for you. To avoid this situation, insist on the daily rate card from your loan officer that lists the lowest rates of all his products.

Regulation Offers Some Protection

The Real Estate Settlement Procedures Act (RESPA) lays down that lenders must give an accurate estimate of closing costs at the time of submitting your application. Extra charges are in violation of the law. Nevertheless many banks often try to slip them in. Insist on a detailed list of closing costs. If you find any suspicious or unnecessary charges, you have the right to ask your loan officer for an explanation.

While it may be advisable to seek recommendations for mortgage lenders, you need to be careful if the advice comes from a real estate agent. With estate agents, it is more likely that instead of referring you to the best deal possible, they send you to the lenders who pay them a commission for doing so.

Some mortgage brokers will often mislead you with pre approvals. They lead you to believe that a pre approval practically guarantees you the mortgage. However, at the actual time of getting approved for a mortgage, these pre-approvals are of no value and may as well be wastebasket approvals.

The Government has made efforts to ensure protection for the consumers with government mandated disclosure forms. However the miniscule type combined with complex financial figures can be difficult to read or comprehend easily. Even worse, it can be use to conceal the truth just as it can reveal it. Overall, make sure that when you are selecting your quotes, you keep in mind that opting for what appears to be the cheapest quote initially, or depending completely on the recommendations of the lender are not good strategies with seeking out the right mortgage for you.

For current rates on mortgage loans in Oklahoma, Log on to the #1 rated lender in the state for the last 4 years website www.zfgmortgage.com or call

1-877-205-7266 

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04.17.13
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Will Your Bank Give You The Best Mortgage at The Lowest Mortgage Rate

 

ImageMany of us tend to form a relationship with our bank even in these times of big banks. This does not mean, however, you should look to your personal bank for a mortgage.

Will Your Bank Give You The Best Mortgage?

 

It is a common misconception for people to assume that their bank will give them the best mortgage. It is a natural thing to assume, especially since people have often been banking with the same institution for many years and they feel comfortable with them. However, the fact is that if you limit yourself to going directly to your bank and getting a mortgage from them without looking elsewhere you are most likely shooting yourself in the foot. You are restricting the possibility of other options that might be better for you and this is never a good thing.

 

There is no doubt that your own bank might give you the plan you want. There is a chance that they will give you a good offer that would be tough to beat by any considerable margin elsewhere. However, this is just a chance. You will only know if it’s anything more than a chance by actually looking elsewhere. Sure, the comfortable and trust factors weigh in, and these can be major factors since you want to trust the institution that is giving you such a large amount of money for such an important thing, but there are many other trustworthy lenders out there that may have a better offer for you. Keep in mind that your bank will probably sell your mortgage to another lender within the first year.

 

The first place to go is to other major banks and lending companies which you know of. By going to these first, you are going to major companies which are trustworthy. Most major banks offer fairly similar rates, but it is still worth it to check around. In fact, you would be crazy not to check around. You may get yourself a quarter or half a percentage point off, which might seem small but can actually turn out to saving you thousands of dollars in interest payments. These other banks might also have other incentives or better options that you will want to consider. If you own a business, they may even offer you a better deal in an attempt to pick up that business.

 

There are plenty of other lending companies you can check with, both major and minor, online and offline. It is to your benefit to check as many as possible and not settle with your own bank just because they are the first place you check. Getting a mortgage is a huge thing and it is important to get the right mortgage plan for you, and this will only be done properly if you evaluate your options.

 

 ZFG Mortgage is Oklahoma Top Rated mortgage company. We have relationships with 125 of the largest banks in the country, But we work with them on the wholesale channel.  What this means is we are able to offer our borrowers the same fixed rate mortgage they would get from there bank at the same cost but with a rate that’s .250% – .375% lower rate!

If you would like to find out your options for a Purchase or Refinance mortgage in Oklahoma, click the link below to go directly to our website. Or Call 1-877-205-7266 approved for a mortgage

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